What is a hard credit check?
Our guide explains what a hard credit check is, how it differs from a soft check, how long it stays on your file and other key questions you might have.
Key Takeaways
A hard credit check usually happens when you formally apply for credit, such as a loan, credit card or mortgage
Hard checks are recorded on your credit file and can be seen by other lenders
A single hard check will usually have a small impact, but several applications in a short period could make you appear higher risk
Most hard searches remain on your credit report for around 12 months, although some may be visible for up to two years
You can minimise unnecessary hard checks by using eligibility checkers before applying and only applying for credit you're likely to be accepted for
What is a hard credit check?
A hard credit check is when a lender or other company carries out a detailed search of your credit report as part of an application for credit.
Hard checks are usually carried out when you apply for credit such as a loan, credit card, mortgage or car finance. The search is recorded on your credit file and can be visible to other lenders.
The information from the search helps the lender assess your creditworthiness and, alongside other information, decide whether you're suitable for the credit you're applying for.
How is a hard credit check different from a soft check?
The main difference is that a hard credit check is an in-depth review of your full credit report triggered by a formal application for credit, whereas a soft credit check is a brief overview used for background or eligibility checks.
Hard credit checks can be seen by other lenders, whereas soft credit checks can't be viewed by anyone else.
What information does a hard credit check reveal?
A hard credit check gives a lender access to information on your credit report. This can include:
Your name, date of birth and current and previous addresses
Whether you're registered on the electoral roll
Details of your existing credit, such as loans and credit cards
Outstanding debts and how much credit you have
Your repayment history, including late or missed payments
Details of current accounts and overdrafts
Financial associations, such as someone you have a joint account or mortgage with
Public record information, including County Court Judgments (CCJs), bankruptcies and Individual Voluntary Arrangements (IVAs)
The exact information available and how far back it goes can vary depending on the credit reference agency and the type of search.
What are examples of borrowing where I might need a credit check?
Here are typical examples of credit products where a hard check will often be carried out:
Applying for a credit card
Taking out a personal loan
Applying for an overdraft facility
Getting a mortgage or remortgage
Signing up for a mobile phone contract (pay-monthly)
Taking out car finance (hire purchase or personal contract purchase)
Applying for a rent-to-own or high-cost credit agreement
Whether a hard or soft search is used can depend on the company and the type of application, so check before applying if you're concerned about a hard search.
Who else might run a credit check on me?
Credit checks aren't limited to banks and other traditional lenders. Other companies and organisations may also search your credit file, including:
Landlords and letting agencies
Some employers
The type of search can vary. For example, a company may use a soft search for an eligibility or identity check, while a hard search may be carried out as part of an application.
If you're unsure whether a company will carry out a hard search, check its terms before you apply.
What impact will a hard credit check have on my credit score?
A single hard credit check usually has a small, short-term impact on your credit score. But many hard searches in a short period can make you look like you’re seeking a lot of credit, which can raise concerns for lenders about affordability and risk.
As long as your credit behaviour sees consistent on-time payment of bills and low utilisation of credit, then any negative impact of a hard credit check will quickly fade.
How do lenders check what I can afford to repay?
A credit report is only part of a lender's assessment. When you apply for credit, you may also be asked for information such as your income, employment status, address and regular expenses.
Lenders can use this information alongside details of your existing borrowing to assess whether you can reasonably afford the repayments.
They may consider your income and outgoings, as well as other financial commitments you already have.
This helps them assess whether the proposed repayments are affordable for you, rather than relying solely on your credit history.
What else do lenders look at besides my credit file?
Lenders may consider information you provide in your application as well as your credit report.
This can include:
Your income and employment details
Your regular household expenses and outgoings
Your existing borrowing and financial commitments
Your past account history and how well you've managed previous borrowing
Your address and personal details
Information about any financial associations
Different lenders use different criteria, so having a good credit score doesn't guarantee that your application will be accepted.
How long do hard credit checks appear on a credit file?
Most hard searches stay on your credit report for around 12 months, though the record of them may remain visible up to 24 months depending on which credit reference agency is used.
They’re relevant especially in the first year because multiple hard checks in a short time can signal higher risk to lenders.
Can I remove a hard credit check?
You generally can't remove a valid hard credit check if you gave permission for it as part of a credit application.
However, if you see a hard search that you don't recognise or didn't authorise, contact the company that carried out the search and ask why it was made. You should also contact the relevant credit reference agency to dispute the entry.
If you believe you've been the victim of identity fraud, report it to Action Fraud and contact the credit reference agencies so they can investigate and help protect your credit file.
What else can harm my credit score?
Beyond too many hard checks, your credit score can be harmed by:
Late or missed repayments on credit cards, loans or other credit accounts
High credit utilisation (using a large proportion of your available credit)
Defaults, bankruptcies or County Court Judgments (CCJs)
Being registered at multiple addresses
Having a thin credit file, meaning few applications for credit
Having many new accounts or many searches within a short timeframe
Other useful guides
Looking for more information about credit scores? We have plenty of guides to help:
Check your credit score with Credit Monitor
If you don’t know your credit score you won’t have the full picture when it comes to your finances.
A poor credit score may mean you won’t get the best deals or most favourable interest rates available. And you could be rejected for credit cards, personal loans and mortgages.
You can check your credit score for free with MoneySuperMarket’s Credit Monitor. It will help you spot and correct any errors and provide hints and tips on how to improve your rating.
Frequently asked questions
Will a hard credit check ruin my credit score?
A single hard check will not ruin your score, but multiple checks in a short period can have a more significant effect.
If I’m declined credit, can I apply again straight away?
It’s better to wait a few months, check what caused the decline and improve any weak points before applying again, to avoid more hard checks piling up.
Does a credit card eligibility checker count as a hard check?
No. Most eligibility checkers, including MoneySuperMarket’s, perform a soft check which won’t affect your credit score.
Why are soft credit checks useful?
Soft credit checks let companies assess certain information without leaving a search that's visible to other lenders or affecting your credit score.
They're commonly used for eligibility checks, identity checks and when you check your own credit report. This means you can use an eligibility checker to compare your chances of being accepted before deciding whether to make a full application.
If I have many soft checks, does that affect me?
No. Soft checks are not visible to lenders, so they don’t impact your credit score and won’t harm your approval chances.
Will a hard check stop me getting a mortgage later?
Not necessarily, but if you’ve got several hard checks or many recent applications, lenders may view you as higher risk, which could affect mortgage offers.
Can I ask a lender not to carry out a hard check?
You can ask, but if you’re formally applying for credit the lender usually needs to carry out a full credit check to assess your application.
Does being on the electoral roll affect my credit check?
Being on the electoral roll can help credit reference agencies verify your name and address when you're applying for credit.
If you're eligible to register to vote, making sure you're registered at your current address can therefore help lenders and credit reference agencies match your details correctly.
Being on the electoral roll doesn't guarantee that you'll be accepted for credit, as lenders consider several factors when making their decisions.
Author
Tim Heming
Personal Finance Expert
Tim Heming is a journalist and editor who has written about personal finance for national newspapers and consumer websites for 15 years. Tim enjoys providing no-nonsense information to help consumers...
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Collette Shackleton
Content Writer
Collette is an experienced Content Writer at MoneySuperMarket, helping people make sense of money and insurance topics without the jargon. She shares her experience as a first-time Mum and top...
